Mixed-Use Property Financing
Retail below, apartments above, and a bank that can't decide which department owns your loan. Mixed-use is its own asset class — finance it with lenders who treat it that way.
Why mixed-use confuses conventional lenders
A mixed-use building blends two or more income types — most often street-level retail or office with residential units above — under one roof and one loan. That blend is exactly what makes these properties durable investments: diversified income, walkable locations, and demand from both commercial tenants and renters. It's also what makes them awkward at a bank, where the residential desk and the commercial desk each see half a deal and neither wants to own the whole one.
The underwriting questions are genuinely different. Which income stream dominates? How are the commercial leases structured, and what happens to cash flow if the retail space goes dark? Is the residential component legal, permitted, and separately metered? Lenders who specialize in mixed-use answer these questions daily and size loans on the blended reality of the building rather than forcing it into a single-purpose box.
Why mixed-use deals get stuck
What mixed-use lenders look for
How Denali approaches mixed-use deals
Denali Commercial Mortgage was founded in 2012 in Happy Valley, Oregon, in the Portland metro — a region full of exactly this kind of building, from main-street storefronts with apartments above to live/work conversions. Our team's 40+ years of combined commercial lending and finance experience includes the mixed-use files that banks pass between departments until the borrower gives up.
We underwrite the building the way it actually operates: both income streams, both tenant profiles, one coherent story. Owner-operators running a business on the ground floor route to owner-occupied and SBA programs; investors route to small balance, multifamily, or bridge depending on the mix and the plan. Every transaction receives individual review, and terms are quoted per deal — request current terms for your scenario.
How It Works
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Get Qualified
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Consultation
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Documents
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Review
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Term Sheet
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Underwriting
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Conditions
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Closing
Common Questions
Is mixed-use financed as residential or commercial?
It depends on the income split and the lender. When residential income dominates — often 50% or more — multifamily programs can apply. When the commercial component is significant, the deal is underwritten commercially. Many lenders specialize in exactly the blended zone where neither pure product fits.
The ground-floor retail is vacant. Can I still get financing?
Yes, but the structure changes. Lenders will size the loan on the residential income alone, or on a market-rate pro forma for the retail space with more conservative leverage. If the plan is to re-tenant or renovate the commercial space, bridge programs fund that repositioning directly.
I run my business on the ground floor and live upstairs. What fits?
That's an owner-occupied scenario, and it can be one of the strongest borrower profiles in commercial lending. SBA and owner-occupied programs finance the purchase or refinance of the building your business operates from, often at higher leverage than pure investment deals.
Why do appraisals take so long on mixed-use buildings?
Comparable sales for a specific mix — say, four units over a restaurant — are genuinely scarce, so appraisers widen their search and add analysis. Lenders who know the asset class anticipate this and build it into the timeline; banks discovering it mid-process often stall instead.
Tell us about your deal. We will tell you what fits.